Category: Bookkeeping

A $100,000 error may not be material if it won’t affect the reported numbers. To ensure accurate and reliable financial reporting, external auditors play a crucial role. Their objective is to independently assess the financial statements and provide assurance that the reported figures are free from material misstatement, including overstatements. However, it is important for… Continue reading What does understated mean?

To avoid messing up your books, I recommend reaching out to your accountant. The Actual Cost divided by Budget Cost represents Percentage of Completion, so you can see how far along you are. Then it uses that value times the Contract Value shows the percentage of the contract you should be invoicing based on how… Continue reading Solved: Work in Progress General Contractor Construction

Therefore, the inventory levels rise from 0 and end with the quantity of batch size every time a batch is produced. So, in order to calculate the average inventory levels we use the given formula. As a result, retailers have to resort to solutions that impact their inventory costs. For instance, the cost of renting… Continue reading Inventory Cost Accounting: Methods & Examples

In this article, we separate adjusting entries into Revenue transactions and Expense transactions. This allows for a look at the contrast between Accruals and Deferrals within those Revenue and Expense transactions. Adjusting Entries are the accounting tool used to bring transactions into the correct accounting period. Harold Averkamp (CPA, MBA) has worked as a university… Continue reading Deferral Definition + Journal Entry Examples

In CP16/22, the PRA set out details of the applicable accountability framework in Appendix 6 – PRA statutory obligations and provided its assessment of relevant considerations separately in each chapter. The PRA has provided a summary of its updated overall assessment below, having taken into account consultation responses. More detailed updated explanations are included in… Continue reading Equity Multiplier Formula & Definition Explained